06 May Federal Housing Finance Agency Extends HARP for Two More Years
The Home Affordable Refinance Program, also known as HARP, has been extended for another two years by the Federal Housing Financing Agency (FHFA). The original program was due to expire at the end of this year, but will now be available for interested borrowers until December 31, 2015. The FHFA will continue to monitor the program, which assists severely underwater homeowners with programs to help them avoid foreclosure.
According to FHFA Acting Director Edward J. DeMarco, “More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk. We are extending the program so more underwater borrowers can benefit from lower interest rate.” FHFA says they’re working on a campaign to spread the word about the extension so that more borrowers can take advantage of the program.
In order to qualify for HARP, there are certain eligibility requirements that a borrower must meet. Here’s an overview from the FHFA regarding the selection requirements:
- The loan must be owned or guaranteed by the GSEs
- Loans must have been sold to the GSEs on or before May 31, 2009
- The mortgage can’t be one that was previously refinanced under HARP unless it is a Fannie Mae loan that was refinanced under HARP from March to May, 2009
- LTV must be greater than 80 percent
- Borrower must be current on their mortgage payments with no late payments in the last six months and no more than one late payment in the last 12 months